Blue Grotto under court-appointed receivership

PROVIDENCE – Rhode Island Superior Court Judge Michael A. Silverstein has appointed a temporary receiver to oversee the Blue Grotto restaurant’s finances and assets, following the closure of the Federal Hill eatery earlier this month.

Stephen Del Sesto, a partner in the Providence law firm of Donoghue, Barrett & Singal, said he has already received interest in the Blue Grotto from other local restaurant operators, some of whom have toured the 200-seat restaurant.

“Obviously it goes without saying this is a sad day to see the doors of the iconic Blue Grotto Restaurant shuttered and its operations shut down. The first step is to evaluate the financial situation and assess the assets currently in place,” said Del Sesto in a statement.

His spokesman, William Fischer, said the receiver “would like to be in a situation where we can announce the doors have reopened under some scenario,” but that it’s too early to predict whether that remains a possibility.

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Anyone interested in the space or reuse of the space should contact Del Sesto with inquiries at BlueGrottoReceiver@dbslawfirm.com. Del Sesto will serve as the restaurant’s receiver until July 15, when Silverstein will appoint a permanent receiver.

The Blue Grotto first opened on Federal Hill 34 years ago as an upscale, classic Italian restaurant. Owner Michael Danahy purchased the restaurant in 2006.

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